Devon Energy Stock Fair Value – DEVON ENERGY Reports Second Quarter Earnings for 2023 Fiscal Year
August 13, 2023
☀️Earnings Overview
On August 1, 2023, DEVON ENERGY ($NYSE:DVN) announced its earnings results for the second quarter of fiscal year 2023, which concluded on June 30, 2023. Total revenue for the quarter was USD 3.5 billion, representing a 38.7% decline compared to the same quarter of the prior year. Net income for the quarter was USD 0.69 billion, showing a 64.2% decrease year over year.
Market Price
The oil and gas company saw its stock open at $53.7 and close at the same price, down 0.6% from the prior closing price of 54.0. Despite this decrease in earnings, DEVON ENERGY remains one of the largest operators in the energy industry. It boasts a wide portfolio of assets and continues to explore new opportunities in their industry.
Furthermore, the company is focused on developing their technology and operations to become more efficient and cost-effective in order to remain competitive in their industry. Despite this, the company remains optimistic about their future prospects and is committed to developing their operations and technology to remain competitive in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Devon Energy. More…
| Total Revenues | Net Income | Net Margin |
| 17.01k | 4.74k | 27.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Devon Energy. More…
| Operations | Investing | Financing |
| 7.1k | -6.06k | -4k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Devon Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23.36k | 12.21k | 17.19 |
Key Ratios Snapshot
Some of the financial key ratios for Devon Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 43.0% | 173.0% | 38.3% |
| FCF Margin | ROE | ROA |
| 6.2% | 37.0% | 17.4% |
Analysis – Devon Energy Stock Fair Value
At GoodWhale, we specialize in analyzing the fundamentals of DEVON ENERGY. We use our proprietary Valuation Line to calculate the intrinsic value of DEVON ENERGY share, and have determined it to be around $52.0. Currently, it is being traded at $53.7, meaning that it is a fair price, but slightly overvalued by 3.2%. More…
Peers
Devon Energy Corp is an oil and gas exploration and production company. Its competitors are EOG Resources Inc, Pioneer Natural Resources Co, Diamondback Energy Inc.
– EOG Resources Inc ($NYSE:EOG)
EOG Resources Inc is an American petroleum and natural gas exploration and production company with operations in the United States, Canada, Trinidad and Tobago, the United Kingdom, and China. The company is headquartered in Houston, Texas.
EOG Resources Inc has a market cap of 76.23B as of 2022 and a Return on Equity of 21.35%. The company is engaged in the exploration, development, production, and marketing of crude oil and natural gas. It has operations in the United States, Canada, Trinidad and Tobago, the United Kingdom, and China.
– Pioneer Natural Resources Co ($NYSE:PXD)
Pioneer Natural Resources is an American oil and gas exploration and production company with operations in the United States, Canada, and Trinidad and Tobago. The company has a market cap of $59.8 billion as of 2022 and a return on equity of 21.22%. Pioneer Natural Resources is one of the largest independent oil and gas producers in the United States. The company’s operations are focused on the Permian Basin in West Texas, where it is one of the largest leaseholders and producers.
– Diamondback Energy Inc ($NASDAQ:FANG)
Founded in 2007, Diamondback Energy Inc is an oil and natural gas company based in Midland, Texas. It is engaged in the exploration, development, and production of onshore oil and natural gas reserves in the Permian Basin in West Texas. As of December 31, 2020, the company had estimated proved reserves of 5.4 billion barrels of oil equivalent.
Diamondback Energy Inc has a market cap of 25.96B as of 2022. Its ROE for the same year is 31.52%. The company is engaged in the exploration, development, and production of onshore oil and natural gas reserves in the Permian Basin in West Texas. As of December 31, 2020, the company had estimated proved reserves of 5.4 billion barrels of oil equivalent.
Summary
DEVON ENERGY’s second quarter of fiscal year 2023 saw a decrease in revenue of 38.7% compared to the same quarter of the prior year, resulting in a net income decrease of 64.2%. This dismal performance has raised concerns about investing in the company, as investors may be wary of a company that is unable to generate sufficient profits. However, despite the drop in profitability, DEVON ENERGY may still be a worthwhile investment due to its strong cash position, as well as its diversified portfolio of assets. Furthermore, the company’s long-term prospects remain positive and may justify investment in the short-term.
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